re: Real estate or stock market?

I'm not saying that the stock market hasn't produced good returns if you look back over it's history, I'm just stating that most investors don't have the stomach to stay invested in bad times. What would you do in 2008, if your million dollar account went down 45%? What return would it take to get even after going down 45%?

Just so you know that I do believe in the market. I have about 1/3 of my net worth in market related investments, 1/3 in real estate, and 1/3 in my business.

This is how I look at a real estate investment:
Buy a 100k house with 20% down financed for 15 years. Rent covers note, taxes, insurance, maintenance. After 15 years, house doesn't appreciate or depreciate. What is your rate of return? I know this is a rather simple example, but the return is over 11%, and now the house is paid for, making the return much better for the next 15 years.